Insider's View: The Top M&A Deals of 2013 (Part 2 of 3)

Hess & Sunoco make headlines; 7-Eleven, Couche-Tard relatively quiet

Dennis L. Ruben, Executive Managing Director, NRC Realty & Capital Advisors LLC

Top Convenience Store Merger & Acquisition News: Hess, Sunoco, 7-Eleven, Couche-Tard

Other Notable M&A Transactions

  • Lehigh Gas Partners LP purchased 30 gasoline stations in the Knoxville, Tenn., market from Rocky Top Markets LLC and Rocky Top Properties LLC. As part of that transaction, Lehigh entered into leases for four stations, assumed seven third-party supply contracts and purchased certain equipment and other assets at the sites for a total consideration of $36.9 million. In a complementary acquisition, Lehigh purchased 14 Zoomerz gas stations in eastern Tennessee from Rogers Petroleum Inc. and affiliates, assumed the leases for three stations and purchased certain other assets and equipment at the 17 sites for a total consideration of $21.1 million. Lehigh also acquired 45 independent dealer supply contracts, five subjobber supply contracts and other assets from Manchester Marketing Inc. for $11.1 million.
  • Valero Energy Corp. completed the spinoff of its retail business in a tax-free distribution to shareholders. The newly created entity, CST Brands Inc., trades on the NYSE under the symbol CST. CST Brands has approximately 1,900 locations in the United States and Canada, with $13 billion in revenues in 2012. CST Brands opened 15 new stores in the first nine months of 2013.
  • Tesco PLC completed the sale of most of its Fresh & Easy Neighborhood Markets Inc. small-format grocery business to YFE Holdings Inc., an affiliate of Yucaipa Cos.
  • TravelCenters of America LLC acquired 31 Minit Mart locations for $67 million from Fred’s Minit Mart LLC of Bowling Green, Ky. Of the 31 stores being acquired, 28 are in Kentucky and three are in Tennessee. These stores generally include 10 fueling positions and have about 5,000 square feet of interior space. During 2012, these 31 stores dispensed about 38 million gallons of fuel.
  • Atlas Oil Co. purchased most of the assets, including 20 gas stations, from The Hadi Cos. and its affiliates through a sale conducted under the U.S. Bankruptcy Code. The sale included 20 retail sites throughout the metro Detroit area and 50 retail fuel supply agreements that are mostly branded Marathon and Speedy.
  • South Florida Commercial Properties LLC, an affiliate of Marvin Hewatt Enterprises of Lawrenceville, Ga., acquired 20 Chevron stations in South Florida.
  • PAPCO Inc. acquired the “Tidewater retail assets”—23 Shell-branded gas stations, one Exxon location in southeastern Virginia and various supply contracts—from SMO Inc., a wholly owned subsidiary of The Wills Group Inc.
  • U.S. Oil, the petroleum and renewable-energy distribution division of U.S. Venture Inc., acquired Combined Oil, a branded wholesale fuel supply business that supplies more than 160 c-stores throughout Wisconsin, Illinois, Indiana and Kentucky.

Other Oil Company Initiatives

  • Tesoro Corp. sold all of its interests in Tesoro Hawaii LLC to Hawaii Pacific Energy LLC for about $225 million. Tesoro Hawaii operates the Kapolei refinery, a network of about 30 retail stations and associated logistical assets. Hawaii Pacific Energy LLC is a wholly owned subsidiary of Par Petroleum Corp. of Houston. Tesoro also acquired BP’s fully integrated southern California refining and marketing business, including the Carson, Calif., refinery and retail network. The purchase price for BP’s assets was $1.075 billion, plus the market value of inventory, which was estimated at $1.35 billion. In addition to the Carson refinery, which produces 240,000 barrels per day, the transaction included 800 dealer-operated retail stations in southern California, Nevada and Arizona, the ARCO brand and other trademarks, and a master franchisee license for the ampm c-store brand.
  • Marathon Petroleum Corp. (MPC) announced that it would invest $925 million to grow the Speedway c-store segment. Marathon has several new stores under construction in existing markets and is evaluating potential new markets for Speedway. Speedway, an MPC subsidiary, owns and operates 1,470 stores in nine states. Speedway intends to add 60 to 65 new or rebuilt stores during each of the next three years.

Dennis Ruben is executive managing director of NRC Realty & Capital Advisors LLC, Scottsdale, Ariz.


By Dennis L. Ruben, Executive Managing Director, NRC Realty & Capital Advisors LLC
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